We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia here: https://t.co/r3Ku0p9dw1 https://t.co/I1AA0UEyWq
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/o4zt4pmSzc
  • The $USDINR may fall as the Nifty 50 rises after the US and China avoided tariff escalation and Indian CPI increased at its fastest pace since July 2016 amid on onion shortage. Get your market update from @ddubrovskyFX here:https://t.co/iXLf98geXL https://t.co/uVwbkkkl09
  • My weekend trading video: 'A #Dow and Yuan Retreat Could Break 2019's Bullish Complacency' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/14/A-Dow-and-Yuan-Retreat-Could-Break-Break-2019s-Bullish-Complacency.html?CHID=9&QPID=917719
  • The $USD may extend declines against its ASEAN counterparts after the Fed rate decision. The Philippine Peso and Singapore Dollar are attempting key technical breakouts. Get your market update from @ddubrovskyFX here:https://t.co/JoPLb4Oi2q https://t.co/fKzeBlWaCx
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/Mf9e1cgWmR
  • The #Euro jumped higher to challenge range resistance capping upside progress since mid-October. Signs of ebbing momentum warn it may be back on defense soon. Get your market update from @IlyaSpivak here: https://t.co/MGqVDEWhUD https://t.co/rQRxJAmLWi
  • RT @zerohedge: Is The Market Up This Week? Just Ask The Fed's Balance Sheet https://t.co/6p01J9yAZ8
  • $USD: "The US Dollar is making a last-ditch effort to cling onto a key technical support level after dropping 3% from its 2019 high as risk appetite roars and the Fed inflates its balance sheet." - via @DailyFX Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/12/14/us-dollar-outlook-fx-volatility-rising-from-extreme-lows-usd-levels-to-watch.html https://t.co/87cITJPVQa
  • The $NZD is testing resistance guiding the currency lower against its US counterpart for over two years. Will buyers prevail or be rejected yet again? Get your market update from @IlyaSpivak here:https://t.co/hRsbxhwotM https://t.co/ehlbb43gqd
Gold Prices Drop as US GDP Data Revives Fed Rate Hike Bets

Gold Prices Drop as US GDP Data Revives Fed Rate Hike Bets

2017-03-31 05:54:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • Gold prices drop as US GDP data rekindles Fed rate hike speculation
  • Markets’ renewed sensitivity to US economic data puts PCE in focus
  • Crude oil prices eye EIA monthly report, rig count figures after surge

Gold prices suffered the largest drop in a month as the US Dollar rose alongside Treasury bond yields, sapping demand for anti-fiat and non-interest-bearing assets. The priced-in Fed rate hike outlook firmed, with the year-end level for the target Fed Funds rate implied in futures prices rising by the most in two weeks.

The move followed an unexpectedly large upside revision on fourth-quarter US GDP figures. The annualized growth rate was nudged up to 2.1 percent from 1.9 percent in the prior assessment. Economists were expecting a shallower upgrade to 2 percent.

Perhaps most significantly, price action after the GDP release suggests markets are becoming responsive to upbeat US economic news-flow once again. That may herald deeper losses if the upcoming release of PCE inflation data – the Fed’s favored price growth gauge – also tops consensus forecasts.

Crude oil prices continued to march higher amid a lull in top-tier event risk as expected, building on gains following Wednesday’s upbeat DOE inventory data. The EIA monthly supply report and Baker Hughes rig count data are in focus from here and may cap gains if rising swing output continues to look ominous.

Have a question about trading crude oil and gold? Join a webinar and ask it live!

GOLD TECHNICAL ANALYSISGold prices recoiled from monthly highs, hinting a double to may be taking shape. A daily close below the 14.6% Fibonacci expansion at 1236.83 paves the way for a test of the 23.6% level at 1220.17. Resistance is at 1263.87, marked by February 27 high and a falling trend line capping the upside since early July 2016.

Gold Prices Drop as US GDP Data Revives Fed Rate Hike Bets

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil continued to push upward, breaching the psychologically noteworthy $50/bbl figure. From here, a daily close above the 50% Fibonacci retracement at 51.03 exposes the 61.8% level at 51.97. Alternatively, a move back below the 38.2% Fib at 50.09 opens the door for a retest of the 48.93-49.09 area (former resistance, 23.6% retracement).

Gold Prices Drop as US GDP Data Revives Fed Rate Hike Bets

Chart created using TradingView

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.